SME BUSINESS LOAN

img

Home > SME Loan

Understanding Everything about Business Loan SME Loan

There are many individuals and even businesses that wonder what are SME loans? The MSMEs are also known as SMEs or small and medium enterprises. With an M added, the full form becomes Micro, Small and Medium Enterprises. SME loans are offered to all those businesses that fall in the category of SMEs and MSMEs. These loans are generally provided to small business owners, women entrepreneurs and start-up owners on a short-term basis. The duration of these loans can vary from one lending organisation to another. SME loans eligibility requirements are minimum because of the unsecured nature of these loans. Almost any small business owner can easily apply for SME loans online at portals like FlexiLoans.


Benefits of SME Loans

NBFCs like FlexiLoans have kept the eligibility criteria for SME loans to the bare essentials for faster processing of the loans. The borrowers of these loans do not have to provide several documents that can do nothing but hold-up the loan approval procedure. Some of the major benefits of SME loans are as follows:

Accessibility

Operating a business in India can be daunting. This is because there are seasonal demands for things, and the behaviour of the buyers tends to change every moment. Most of the time, small businesses do not have surplus funds for meeting the sudden rise in the demands of the customers. This is when it works for them to apply SME loan online. Availing such loans is a hassle-free and easy procedure. The business owners do not need to spend a lot of time in getting the loan amount since the documentation is minimal. Loan processing time is quick, and there is even an online account available for accessing loan details and account statements on the go.

Complete Control

It is very important for small businesses to address their financial requirements while doing business in a full-fledged manner. Sometimes, it is not easy for such businesses to procure finance. The venture capitalists and investors offering funds seek to have complete control of the company. In such situations, SME loans come to the rescue of the small business owners. These loans serve as excellent sources of finance for the business owners looking to avoid the liquidation of company control.

Making the right calculations pertaining to the procurement and the use of an SME loan is very important. For this to happen smoothly, the borrowers can take the help of an SME loan EMI calculator.


Basic Eligibility Criteria

Minimum Business Vintage 1 year
Monthly Business Sales Minimum 2,00,000

How to apply for an SME loan online?

Step 1:

Fill the online form- This is the application form that asks for basic requirements such as borrower’s details and the reason for the loan.

Step 2:

Upload Documents- These are documents such as PAN Card, Aadhar Card, IT returns, and Bank Statement. Many websites also offer the option of generating a credit score through the help of these documents.

Step 3:

Get Approved! Once you have submitted all the documents and the online application form, the lenders will go through them and in a few minutes approve your application if the documentation is in place!


Documents Required for SME Business Loan

Personal KYC PAN card
Residential Address Proof (Any One) Rent Agreement | Driving License | Voter's ID | Ration Card | Passport | Aadhar Card
Banking Last 6 months current account bank statements
Business KYC (Any One) GST Registration Certificate | Shops & Establishment Certificate | Business PAN Card

Frequently asked questions

What are the purposes for which I can get a loan via FlexiLoans?

FlexiLoans is here to provide you financial access for your business funding needs. You have to undergo simple and transparent Credit Evaluation, basic documentation before we disburse the loan. You may get loans via FlexiLoans for:
  • Expanding your business
  • Servicing regular working capital needs
  • Managing seasonal working capital requirements
  • Manage short term cash flow gaps

Why should I avail loan via FlexiLoans?

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

How can I get a loan under SME/MSME?

You are eligible for an SME/MSME business loan if your business has been running for at least 1 year and has monthly total sales of at least ₹2,00,000

What documents are required to apply for a loan?

KYC document

  • - Pan card

Proof of residential address (any one)

  • - Rent Agreement
  • - Driving License
  • - Voter's ID
  • - Ration Card
  • - Passport

Banking

  • - Last 6 months of bank statement of current account

Business KYC (any one)

  • - GST Registration Certificate
  • - Shop Establishment Certificate

Financial documents (For loans greater than 20 Lakhs)

  • - 2 years Audited financials
  • - Last 2yrs ITR
  • - GST Returns of 6 months

Are there any charges other than interest rate that I have to pay to avail the loan?

We may charge processing fee to facilitate the loan towards legal and documentation charges. You may be charged penal charges for late or irregular payment behavior.

Are loans available at a specific time of the year?

You can apply for Unsecured Business loans at FlexiLoans all year round.

How do I check my loan eligibility?

To check the eligibility click on the link here.

What would be the duration of loan?

The average tenure of business loans sanctioned by FlexiLoans is 18 to 36 months.

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

You are eligible for an SME/MSME business loan if your business has been running for at least 1 year and has monthly total sales of at least ₹2,00,000

KYC document

  • - Pan card

Proof of residential address (any one)

  • - Rent Agreement
  • - Driving License
  • - Voter's ID
  • - Ration Card
  • - Passport

Banking

  • - Last 6 months of bank statement of current account

Business KYC (any one)

  • - GST Registration Certificate
  • - Shop Establishment Certificate

Financial documents (For loans greater than 20 Lakhs)

  • - 2 years Audited financials
  • - Last 2yrs ITR
  • - GST Returns of 6 months

We may charge processing fee to facilitate the loan towards legal and documentation charges.

You can apply for Unsecured Business loans at FlexiLoans all year round.

To check the eligibility click on the link here.